Snack on: Operators will shift to healthier product offerings to accommodate consumer demand

The Vending Machine Operators industry has suffered setbacks and occasionally struggled to keep pace with shifting consumer tastes, resulting in a drop in industry growth over the past five years. During this time, the industry was challenged by price competition from big-box and grocery stores, in addition to consumers' heightened desire for healthier snack options. This trend has forced operators to alter their vending offerings to fit consumer demand. After implementing healthier options, operators saw revenue growth. Looking ahead, IBISWorld expects the industry to build on successes of recent years by stocking more healthy items, and thereby increase revenue over the five years to more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Operators reevaluated their product offerings to prioritize healthier snacks
  • Many operators’ dependence on soft drink sales left them susceptible to revenue declines
  • Reduced price sensitivity will benefit vending machine operators
  • Industry Report - Industry Key Buyers Chapter

    The Vending Machine Operators industry in Canada experience a low level of market share concentration and is dominated by the presence of small- to mid-size companies. According to Statistics Canada, more than 70.0% of all industry operators are nonemployers and the majority (60.6%) of employing companies have fewer than five workers. In 2017, the top two vending machine operators are expected to account for less than 15.0% of industry revenue, further lending evidence to the fragmented nature of the industry. However, this figure has grown slightly over the past five years, which is a result of the competitive environment surrounding this industry alongside strong consolidation activity...purchase to read more.

    Additional Insights for the Vending Machine Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Vending Machine Operators Industry are

  • Ability to pass on cost increases
  • Economies of scope
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Per capita soft drink consumption in the Vending Machine Operators industry impact industry performance..

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    What's in this report

    What is the Vending Machine Operators Industry?

    This industry comprises establishments that own, stock and service automated machines that retail merchandise, primarily confectionery, snack foods and soft drinks, but also cigarettes, newspapers and other goods. This industry does not include revenue from soft drink producers that operate their own vending machines.

    Industry Products
  • Cold beverages
  • Candy, snacks and confections
  • Vended food
  • Hot beverages
  • Ice cream and frozen products
  • Sundries
  • Milk and dairy
  • Industry Activities
  • Retail sale of ice cream via vending machines
  • Retail sale of soft drinks via vending machines
  • Retail sale of hot drinks such as coffee via vending machines
  • Retail sale of fresh food via vending machines
  • Retail sale of snack food via vending machines
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Per capita soft drink consumption
  • World price of sugar
  • Demand from candy production
  • Demand from snack food production

  • Current Performance
  • Changing consumer tastes
  • Technological advances and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Macroeconomic forces
  • Industry structure
  • Table: Vending Machine Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vending Machine Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing In Canada
  • Wholesale Trade In Canada
  • Retail Trade In Canada
  • Transportation and Warehousing In Canada
  • Educational Services In Canada
  • Healthcare and Social Assistance In Canada
  • Consumers in Canada

  • Key Selling Industries
  • Bottled Water Production in Canada
  • Candy Production in Canada
  • Cigarette & Tobacco Manufacturing in Canada
  • Coffee & Tea Production in Canada
  • Food Service Contractors in Canada
  • Ice Cream Production in Canada
  • Juice Production in Canada
  • Snack Food Production in Canada
  • Soda Production in Canada

  • Products & Services
  • Cold beverages
  • Candy, snacks and confections
  • Vended food
  • Hot beverages
  • Other
  • Milk and dairy
  • Ice cream and frozen products
  • Sundries
  • Chart: Vending Machine Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturing sites
  • Other
  • Offices
  • Retail establishments
  • Educational institutions
  • Healthcare facilities
  • Service establishments
  • Chart: Major Market Segmentation for the Vending Machine Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Vending Machine Operators

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vending Machine Operators Industry

  • Industry Globalization
    Compass Group Canada, Aramark,
  • Table: Compass Group Canada - financial performance
  • Table: Aramark - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Vending Machine Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vending Machine Operators Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cashless Payment
  • For vending machines, cashless payments are performed with credit cards, debit cards or wireless devices.
  • North American Free Trade Agreement
  • A generally duty-free agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • Point-Of-Sale System
  • The combined software and hardware (which usually includes a touchscreen) used to complete a retail transaction.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Vending Machine Operators market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Vending Machine Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vending Machine Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Vending Machine Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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